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8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
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Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Choosing a car insurance company can be overwhelming. State Farm and Liberty Mutual are two options. Both are leaders in the insurance industry with large market shares.
You may know State Farm for its extensive network of independent agents, but this hands-on approach sometimes comes with higher premiums. Liberty Mutual focuses on technology-driven services but may offer less extensive coverage options than its competitors.
In this article, we’ll highlight the differences between State Farm and Liberty Mutual and discuss why it’s important to compare rates, customer service, discounts, and coverages when deciding which insurer to buy a policy from.
State Farm is the largest insurance company in the United States.
Liberty Mutual stands out for its tech-driven solutions and might appeal more to digitally savvy customers.
Both insurance companies offer a wide variety of available coverage options and discounts.
State Farm is the winner due to its higher customer satisfaction ratings and lower rates. Liberty Mutual is more widely available but only by a small margin. However, State Farm doesn’t offer new-car insurance policies in Massachusetts or Rhode Island, while Liberty Mutual is available in all 50 U.S. states and the District of Columbia.[1]
Here’s how the two companies stack up:
Factor  | Liberty Mutual | State Farm |
|---|---|---|
| Insurify Quality (IQ) Score | 7.7 | 9.3 |
| J.D. Power customer satisfaction score | 799 | 833 |
| Average quote: liability only | $161 | $56 |
| Number of available discounts | 13 | 10 |
| Number of states where it operates | 50 | 48 |
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
Liability policies start as low as $40 per month
Liberty Mutual is the sixth-largest private passenger auto insurer in the U.S., with a market share of 4.93%, according to the National Association of Insurance Commissioners (NAIC) 2022 Market Share Report.[2]
| User Reviews | 3.5 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.7 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $161/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $218/mo |
Drivers appreciate the ease of making payments and the company’s helpful customer service. But they dislike the frequent and unexplained rate increases, and some report difficulties in communication and claim handling.
Drivers appreciate the ease of making payments and the company’s helpful customer service. But they dislike the frequent and unexplained rate increases, and some report difficulties in communication and claim handling.
Liberty Mutual offers auto, homeowners, condo, renters, flood, life, and other insurance products. Auto policyholders can save with numerous discounts, including bundling, good student, military, student-away-at-school, claims-free, violation-free, and multi-car discounts. Liberty Mutual has an A rating for financial strength and credit from AM Best. The company often scores low for customer satisfaction and has more than three times the expected number of complaints from private auto policyholders, according to the National Association of Insurance Commissioners Consumer Complaint Index.
Wide range of available discounts
Accident forgiveness available
Available in all 50 states and D.C.
Many negative reviews and customer complaints
Premiums are relatively high compared to industry average
Low customer satisfaction scores from J.D. Power
State Farm is the top private passenger auto insurer in the U.S., with a market share of 16.78%, according to the NAIC’s 2022 Market Share Report.[2]
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $56/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder ’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $109/mo |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.
High rates of customer satisfaction
Rideshare insurance available
Savings for bundling auto with home, renters, condo, or life insurance
No gap insurance offering
May not be the cheapest choice for drivers with violations
Accident forgiveness limited to longtime customers with clean driving records
Both Liberty Mutual and State Farm offer telematics programs, which track your driving and can result in discounts for safe driving.
Liberty Mutual’s RightTrack program tracks things like acceleration, braking, and when you drive, via a mobile app or a device installed on your vehicle. You earn a 10% discount just for enrolling and can save up to 30% on your car insurance by demonstrating safe driving habits.[3]
Drive Safe & Save by State Farm also tracks your trips via a mobile app. You get a discount for enrolling and can save up to 30% based on how you drive.[4]
State Farm offers the cheapest average rates for both liability-only and full-coverage auto insurance policies. We’ll detail the premium differences below, but keep in mind that your insurance quote will vary based on your driving record, age, credit score, and other rating factors.
State Farm has the cheapest average rates for people with a clean driving record.
A liability-only policy costs an average of $56 per month compared to $161 per month through Liberty Mutual. For full coverage, State Farm’s average monthly premium is $109 compared to $218 from Liberty Mutual.
Driver Type | Liberty Mutual | State Farm |
|---|---|---|
| Clean driving record | $161 | $56 |
State Farm wins this category as well, with average monthly rates significantly cheaper than Liberty Mutual’s for a driver with one speeding ticket on their record.
Driver Type | Liberty Mutual | State Farm |
|---|---|---|
| Drivers with a speeding ticket | $204 | $70 |
State Farm offers the cheapest rates for teen drivers, potentially due to its variety of discounts available to young drivers and their families, including discounts for good students, taking a driver training course, and being ticket- and accident-free for three years.
Driver Type | Liberty Mutual | State Farm |
|---|---|---|
| 18-year-old | $276 | $114 |
State Farm comes out ahead in this pricing category as well, offering the cheapest average monthly premiums for drivers with poor credit.
Driver Type | Liberty Mutual | State Farm |
|---|---|---|
| Drivers with bad credit | $186 | $90 |
State Farm offers the cheapest average monthly premiums for senior drivers. Its rates for drivers in their 60s and 70s are lower than those offered by Liberty Mutual.
Driver Type | Liberty Mutual | State Farm |
|---|---|---|
| Senior drivers | $131 | $40 |
Both State Farm and Liberty Mutual offer basic coverage options to protect drivers, passengers, and vehicles, including:
Bodily injury and property damage liability coverage pays for injuries to another person or property caused by the policyholder or someone driving the insured vehicle.
Personal injury protection/medical payments coverage pays for medical payments of the driver and passenger.
Uninsured/underinsured motorist coverage reimburses the policyholder if they’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to pay for the total loss.
Comprehensive coverage reimburses the policyholder for non-accident claims, such as theft or damage due to fire or falling tree limbs.
Collision coverage pays for damage to the policyholder’s car after a car accident.[5]
Here are a few other add-ons you might look for in your car insurance policy.[6] [7]
Coverage | Liberty Mutual | State Farm |
|---|---|---|
| Gap insurance | Yes | No |
| Rental reimbursement | Yes | Yes |
| Roadside assistance | Yes | Yes |
| Rideshare insurance | Only in select states | Yes |
| Travel expenses coverage | No | Yes |
Unlock savings and discounts when you compare quotes with Insurify
Liberty Mutual’s average rates might be higher in every category, but your premiums could be lower if you qualify for one or more of Liberty Mutual’s discounts. Both State Farm and Liberty Mutual offer several discount programs to help customers save money, such as those for maintaining a clean driving record or bundling car insurance with your home insurance.
Here’s how the two insurance companies compare when it comes to discounts offered.
Discount | Liberty Mutual | State Farm |
|---|---|---|
| Clean driving record | Yes | Yes |
| Defensive driving course | Only available in some states | Yes |
| Multi-policy | Yes | Yes |
| Multi-car | Yes | Yes |
| Low mileage | No | No |
| Telematics (safe driving app) | Yes | Yes |
| Anti-theft device | No | Yes |
| New car | No | No |
| Military/affiliation | Yes | No |
| Good student | Yes | Yes |
| Loyalty | No | No |
| Auto pay | Yes | No |
| Student away at school | Yes | Yes |
| Homeowner | Yes | No |
| Alternative fuel | Only available in some states | No |
An apples-to-apples comparison of two different insurance policies can be tough. Below, we address some of the most frequently asked questions for policyholders comparing these two insurance giants.
Yes. State Farm is bigger than Liberty Mutual in terms of market share and total volume of premiums written. State Farm is one of the largest insurance companies in the U.S. in several insurance products.[2]
State Farm’s biggest competitor is Progressive. State Farm has a 16.78% market share, compared to 14% for Progressive. Additionally, State Farm totaled $46.7 billion in direct premiums written in 2022, compared to $38.9 billion for Progressive.[2]
Liberty Mutual has an AM Best financial strength rating of A (Excellent), which indicates financial strength and a solid ability to meet its claims obligations.[8] However, online customer reviews show many customer complaints about claims service.
According to the J.D. Power 2023 U.S. Auto Claims Satisfaction Study, Liberty Mutual earned 866 out of 1,000 possible points — lower than the industry average of 878 points. State Farm, on the other hand, earned 891 out of 1,000 points.[9]
State Farm sets itself apart through its extensive network of local agents and a focus on personalized customer service. It’s one of the best auto insurance companies for customers who want to have a direct relationship with their agent rather than relying on digital or call-center-based customer service models.
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Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
Janet has been a contributor at Insurify since October 2022.
Licensed auto and home insurance agent
4+ years in content creation and marketing
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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